The option agreement also provides for an “option payment,” i.e. the amount that must be paid to the author in return for giving the producer the privilege of using the author`s screenplay for development purposes. Here too, this could go, depending on the bargaining power of the different parties, a very small amount (for example. B, a few hundred dollars or even a dollar) to a larger payment (tens of thousands of dollars). If the other party wishes to extend the option period for an additional period, additional payments would be provided for the author. In most cases, this additional payment is negotiated to be more substantial even when the first payment is low. All movies, TV show drivers and features start with an idea. It is only when this bare bone is stripped of intrigue, theme and character that this idea shows the potential as a film. The author once told a novice screenwriter that the vast majority of screenwriters make only one screenplay, and of the many writings, only a few manage to combine happiness, hard work and talent to complete a film and show it to the public. The way from idea to product work is long and difficult and includes many steps along the way. Each party would eventually like to include a provision in the agreement on the first right to negotiate. The author will have the first right to negotiate for all subsequent publications, to work on reshoots or rewrites.

The producer may wish the first right to negotiate for all rights reserved by the owner/writer. The most important back-end demand may be residues. In today`s market, where there`s probably something in the world watching a movie or TV show on streaming or something like that, a rest of control is likely. You should try to respond to the potential gains of emerging media in your agreement. The option agreement may list certain steps that must be met as a precondition for the manufacturer`s obligations under the agreement, such as the title review chain and obtaining a report on book disclosure. Another essential term in an option agreement is the “purchase price,” that is, the amount of money the author receives if the script is turned into a feature film or television project. The purchase price is often calculated on a slippery scale as a percentage of the budget, so that as the film budget increases, the purchase price, although, as with all negotiated terms, can also vary considerably. But if you`re a screenwriter with an original script (or pilot) and someone wants to produce your work, an option/sale contract is probably what you`re going to sign. The general idea of this type of agreement is that it allows the purchaser, for an initial lower price, to “control” the rights to your script only for an agreed period at certain costs. Of course, there will be many other provisions that will be defined in an option/sale contract, including sequel and remake rights, screen credits, bonuses and much more. The buyer of a scenario may not want to allow the author to reserve rights, apparently because of the potential wind gust – perpetually – of a hot property. The author may reserve the right to write a scene or audio game based on the work.

In practice, if the author was able to produce the film himself, they probably would not have entered into an option agreement with a producer and might not struggle to retain many rights, if at all.